The Chancellor, Philip Hammond’s first (and last) Autumn Statement from a tax perspective was fairly uneventful and largely confirmed many changes which had previously been announced would go ahead such as the reduction in the rate of Corporation Tax to 17% by 2020, changes to the taxation of non-domiciled individuals and offshore trusts from 6 April 2017 and restrictions to the use of salary sacrifice. Some minor new measures were announced and these are detailed below. The lack of new tax legislation is perhaps unsurprising following the Chancellor’s announcement that there was usually no need for bi-annual changes to the tax system and confirmation that we would move to an Autumn Budget from 2017 and a Spring statement from 2018 which would not generally make changes to the tax system.
With GDP set to slow in 2017 before recovering slowly, the Chancellor confirmed that he wanted to promote fairness and broaden the tax base and again highlighted previously announced policies to target individuals who held undeclared and untaxed monies overseas. He also confirmed that his aim was to ensure that “Britain remains the number one destination” and there were clear indications that he wanted to boost investment in key areas such as the tech industries and focus on infrastructure improvements to boost productivity in an attempt to cushion the impact of Brexit.
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Philip Hammond delivers his first Autumn Statement. We highlight areas relevant to UK based international individuals, families and businesses.